Dale’s Corner – What it means to be a licensed residential building contractor

For anyone who’s done work with us before, you’ve probably seen a little “MN Lic. #BC171672” on our letterhead, business cards, etc. In case you’re wondering, it is our builder’s license number. Since not everyone is privy to the construction industry, I thought I’d explain a little more about what it means to be a licensed residential contractor in the State of Minnesota.

A building contractor or remodeler license (RBC) is required for anyone who contracts directly with a homeowner to provide building construction services in more than one skill area. State licensing began in 1992, which is when I received my license.

According to the Minnesota Department of Labor & Industry, to get a license one must…


1. Take and pass licensing exam.

  • There is no prerequisite experience or educational requirement to take exam.
  • Exam fee is $50.
  • The exam consists of 110 multiple choice questions. It is divided into two sections – 1. construction related matters and 2. business & law issues relating to running a construction business in Minnesota.
  • Applicants are given four hours to complete the exam.
  • A score of 70% or higher is required to pass.


2. Submit a fully completed application packet including:

  • License application forms.
  • Current Secretary of State filing (if applicable).
  • Current liability insurance certificate with proper coverage. Workers compensation is required if you have employees.
  • Payment of appropriate fee. The fee depends on gross receipts. Part of the license fee is a Recovery Fund Fee. The Contractor Recovery Fund compensates owners or lessees of residential property in Minnesota who have suffered an actual and direct out-of-pocket loss due to a licensed contractor’s fraudulent, deceptive or dishonest practices, conversion of funds or failure of performance.


RBC licenses are on a two-year cycle. A total of 14 hours of approved continuing education is also required every two years.

The goal of licensing is to ensure a higher level of professionalism and consumer protection. Homeowners who do not hire a licensed contractor have no protection.

Personally, being a licensed residential building contractor means I am committed to doing things the right way — we will provide quality workmanship that is according to code & written industry standards and I will operate my business legally & ethically…so we can display our license number proudly.



Categories : Dale's Remodeling Corner